Image Courtesy: Getty Images
Google has agreed to pay SpaceX approximately $920 million per month for artificial intelligence computing capacity under a multiyear deal that highlights the soaring demand for AI infrastructure and provides a major revenue stream ahead of SpaceX’s highly anticipated initial public offering.
The agreement will give Google access to roughly 110,000 Nvidia graphics processing units, along with supporting processors, memory, and networking hardware housed in SpaceX data centers. The contract runs from October 2026 through June 2029, with capacity gradually increasing through September at a reduced rate. The arrangement was disclosed in a regulatory filing.
Under the terms of the deal, Google can terminate the agreement if SpaceX fails to deliver the committed GPU capacity by September 30, 2026. After the first year, either company may end the contract with 90 days’ notice.
Google said the agreement is intended to address stronger-than-expected demand for Gemini Enterprise, the company’s AI platform for large organizations. The deal marks one of the largest AI infrastructure agreements announced to date and underscores the intense competition among technology companies to secure computing resources.
The contract follows SpaceX’s merger with Elon Musk’s artificial intelligence company xAI earlier this year. The combined business was valued at $1.25 trillion and has invested heavily in AI infrastructure, particularly data centers in and around Memphis, Tennessee.
SpaceX disclosed that it spent $10.1 billion on capital expenditures during the first quarter, with $7.7 billion directed toward AI-related investments. Despite those expenditures, the company’s AI division reported an operating loss of $2.5 billion on revenue of $818 million during the same period.
The Google deal also signals SpaceX’s growing ambitions as a provider of AI infrastructure for third parties. Last month, AI startup Anthropic announced an agreement to utilize the full compute capacity of SpaceX’s Colossus 1 data center in Memphis.
The partnership is notable given that Google and SpaceX compete in several markets, including artificial intelligence and internet connectivity. It also reflects the broader race among major technology firms to secure access to advanced computing hardware as demand for AI services continues to accelerate.
